Lotto24 continues to grow despite weak jackpot development in the first quarter of 2019
Lotto24 Germany’s leading provider of state lotteries online continued to grow in the first quarter of 2019 after an eventful year in 2018 with extraordinarily strong jackpots despite the relatively weak jackpot development Transaction volume increased by 3.6% to EUR 75.9 million (previous year: EUR 73.3 million), while revenue rose by 0.7% to EUR 8.6 million (previous year: EUR 8.6 million) ). Due to the lower share of syndicates due to the jackpot, the gross margin of 11.4% did not quite reach its previous year’s level (previous year: 11.7%).
With 86 thousand new customers in the first three months of 2019 (previous year: 180 thousand), the total number of customers registered with Lotto24 increased by 28.7% to 2,255 thousand (previous year: 1,753 thousand). Marketing costs in connection with the weak jackpot development halved in the first quarter of 2019 to EUR 2.3 million (previous year: EUR 4.6 million).
The marketing costs per registered new customer (»Cost per Lead, CPL«) thus amounted to € 27.10 (previous year: € 25.52). In particular, the positive sales development and lower marketing costs – despite the consultancy costs of EUR 0.5 million incurred in the first quarter of 2019 – led to an improved EBIT to EUR 0.9 million (previous year: EUR -0.3 Million Euro). The result for the period, at EUR 1.0 million, also exceeded that of the previous year (previous year: EUR -1.3 million).
As part of the takeover offer published on November 19, 2018, ZEAL Network SE announced on April 11, 2019, the entry of all closing conditions pursuant to the offer document published on January 31, 2019. In addition, ZEAL published on 3 May 2019 that 93.04% of Lotto24 shareholders had accepted the voluntary public takeover bid.
“We would like to thank all Lotto24 shareholders for their confidence – both in the past years and in the future – and we are pleased that you, as part of the ZEAL Group, would like to continue accompanying us on our journey”, says Petra von Strombeck , CEO of Lotto24 AG.